Table of content

Chapter one: introduction

1.1 Background of the study

1.2 Statement of the problem

1.3 Objective of the study

1.4 Research question

1.5 Research hypotheses

1.6 Scope of the study

1.7 Significance of the study

1.8 Historical background of the company

1.9 Definition of terms

References

Chapter Two: REVIEW OF RELATED LITERATURE

2.1 The concept of Marketing

2.2 The evolution of Marketing in Nigeria

2.2.1 Marketing Institutions in Nigeria

2.2.2 Marketing strategy – Definition and its

importance

2.3.2 Survival of small and medium enterprises (SMEs)

2.4 Strategies for small and medium enterprises

2.4.1 Relationship Marketing and customer

satisfaction

2.4.2 Corporate Social Responsibility on Consumer

Patronage

2.4.3 Market Orientation and business profitability

2.4.4 Product Quality and customer loyalty

References

CHAPTER THREE: RESEARCH METHODLOGY

3.1 The Study Area

3.2 The population of the study

3.3 The research design

3.4 The sampling design and procedures

3.5 Sources of Data and data collection method

3.6 Data Treatment Techniques

3.7 Limitations of the study

References

Chapter Four: Presentation, Analysis and

Interpretation of Data

4.1 Distribution of respondents (By Sex, age,

education, e.t.c)

4.2 Data analysis and interpretation

4.3 Test for hypotheses

4.4 Discussion of findings

References

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary of findings

5.2 Conclusion

5.3 Recommendations

Bibliography

Appendices

CHAPTER ONE: INTRODUCTION

1.1 Background of the study

Marketing strategy has become an important tool

for any firm to remain in competitive market

environment and also become stronger. Aremu &

Lawal, (2012) sees strategy as a pattern of

resource allocation decisions made throughout an

organisation. This encapsulates both desired goals

and beliefs about what are acceptable means of

achieving them. They further opined that strategy

implies the analysis of the market and its

environment, customer buying behaviour, competitive

activities are the need and capabilities of

marketing intermediaries.

Goi, (2005) defines marketing strategy as the set

of marketing tools that firms use to pursue their

marketing objectives in the target market; the view

was earlier expressed by Gronroos, (1999) and

Osuagwu, (2006). Therefore the function of

marketing strategy is to determine the nature,

strength, direction and interaction between the

marketing mix. Marketing strategy is a vital

prerequisite of firm’s ability to strengthen its

market share and minimize the impact of

competition. Marketing performance is central to

success in today’s fast moving competitive markets

and measuring marketing’s performance is critical

to managing it effectively. Long-Yi & Ya-Huel,

(2012). In order to measure marketing strategy

effectiveness, a business has to break down its

marketing function into constituent parts, along

with a mechanism through which to analyse the

interaction between those parts. By doing this

decision-makers of firms will finally be in a

position to relate marketing expenses to

shareholder value and to understand how to tie

marketing initiatives back into the value created

for the firm. Decision makers will be able to

understand the internal motive that propels the

marketing value of business (Chiliya, Herbst &

Roberts-Combard, 2009). The manipulation of the

following variables namely relationship marketing,

marketing orientation, corporate social

responsibility, product quality seem to enhance the

growth of small and medium enterprises (SMEs).

The term “relationship marketing” is a strategy

designed to foster customer loyalty, interaction

and long term engagement. Rouse, (2010). Morris,

Brunyle & Page in Esu (2005) defined relationship

marketing as a strategic orientation adopted by

both the buyers and the seller’s organisation,

which represents a commitment to long term mutually

beneficial collaboration”

The concept “Corporate Social Responsibility” has

been defined in many ways – Most writers on social

responsibility see the concept as a disposition of

an organization to exhibit “Missionary rather than

“Mercenary” attitude towards the society. Holmes &

watts, (2000) on behalf of the World Business

Council for Sustainable Development provide a

reasonable representative definition as: The

continuing commitment by business to behave

ethically and contribute to economic development

while improving the quality of life of the

workforce and other families as well as those of

the local community and society at large. “Business

dictionary” also defines corporate social

responsibility as the firm’s interaction with the

people constituting the environment it operates in

and draws resources from, to foster mutual

understanding, trust and support. These tools are

important on small and medium enterprises (SMEs).

If they are effectively used, it will boost

organisational performance, product quality,

customer satisfaction and profitability.

Small and Medium Enterprises (SMEs) are the

engine of economy growth and development globally

and Nigeria inclusive. By this very nature, small

and medium enterprises (SMEs) constitute the viable

and veritable vehicle for self-sustaining economy

(Oyebamiji, Kareem & Ayeni, 2013). They furthered

discovered that small and medium enterprises in

Nigeria have not performed creditably well and

hence have not played the expected vital and

vibrant role in the economic growth and development

of Nigeria. They note that the situation has been

of great concern to the government, citizenry,

operators and practitioners. These challenges could

be as a result of perceived ineffective marketing

strategy adopted by small and medium enterprises

(SMEs) which is having negative effect on the

organisations performance, market share, customer

satisfaction, sales volume, product quality.

1.2 Statement of the Problem

As a result of the recent world economic meltdown

on the country, there has been a tremendous change

in the operational climate of businesses especially

small and medium enterprises (SMEs). Some business

operators were able to adapt their organisations to

the prevailing situation, while others were not. As

a result of this, they were forced out of business.

(Oyebamiji, Kareem & Ayeni 2013).

One of the major marketing problems facing small

and medium enterprise in Nigeria is lack of

understanding and the application of marketing

concept. In a study conducted by Ogwo, (1999) this

was conspicuously exposed that most Nigerian small

business owners equate “marketing” to “selling” and

this is reflected in their various dysfunctional

business behaviour against customer satisfaction

and good business orientation. They lack the

knowledge and skills of basic marketing ingredients

– marketing research, market segmentation and

marketing planning and control. The outcome leads

to poor quality products, unawareness of

competition, and lack of good connection with

customers. Baker, (1979) & Doyle, (1985) identified

lack of marketing orientation as the major factor

for business failure. Most Nigerian small and

medium enterprises in a higher degree depend on

imported goods and raw materials for their

operations. With the over-devaluation of naira,

vis-à-vis other foreign currencies, they are not

finding it easy to secure these abroad. They

therefore resort to poor locally produced

alternatives. The result therefore leads to poor

quality products. This may be one of the factors

responsible for Calabar municipal consumers

quenching appetite for imported goods even though

many of these foreign goods are equally of poor

quality especially those coming from Asians Far

East countries. Porter, (1980) points out that high

quality raw materials are to producing high quality

products.

Basically this research is aimed at showing the

impact of marketing strategy on the performance of

selected small and medium enterprises (SMEs) in

Calabar municipal Local Government Area.

1.3 Objective of the study

The research objective for this study includes:

1.To determine the relationship between marketing

strategy and performance

2. To ascertain the impact of relationship

marketing on customer satisfaction.

3.To determine the influence of marketing

orientation on business profitability of small

and medium enterprises in Calabar municipal.

4 To evaluate the impact of corporate social

responsibility on consumer patronage.

5 To examine the effectiveness of product quality

on consumer loyalty.

1.4 Research Question:

It is obvious that business in this country

particularly the small and medium enterprises in

Calabar municipal are facing series of economic and

managerial problems as a result of world economic

meltdown. To achieve solutions to this, we will

have to seek the following questions.

Is there any significant relationship between

marketing strategy and performance?

Does relationship marketing have any impact on

customer satisfaction?

Does market orientation influences business

profitability of small and medium enterprises?

To what extent does corporate social

responsibility influences consumer patronage?

To what extent does product quality enhances

customer loyalty?

1.5 Research Hypotheses:

The following hypotheses were formulated for this

study:

Ho: Relationship marketing does not have any impact

on customer satisfaction

Ho: Marketing orientation does not influence

business profitability of small and medium

enterprises

Ho: Corporate social responsibility does not have

any impact on consumer patronage

Ho: Product quality does not enhance customer

loyalty.

1.6 Scope of the study

The scope of this research work is on the impact

of marketing strategy (Relationship marketing,

marketing orientation, corporate social

responsibility and product quality) on the

performance (Customer satisfaction, business

profitability, consumer patronage, customer

loyalty) of selected small and medium enterprises

(SMEs) in Calabar Municipality.

The retail outlets used for the research work

include Vickey Jay Supermarket and Roseberry Mart

Grocery shop. An attempt will be made to study

critically the core marketing strategies on the

performance of small and medium enterprises using

the indicators of performance which are customer

satisfaction, business profitability, consumer

patronage, customer loyalty. This research work

will also look at how relationship marketing will

have an impact on customer satisfaction, product

quality enhancing customer loyalty, how the

influence of corporate social responsibility can

increase consumer patronage and how effective

marketing orientation can have an impact on

business profitability of the selected retail

outlets that was mentioned above.

1.7 Significance of the study

Considering the service of small and medium

enterprises to their consumers, it is very

important and virtually imperative for effective

marketing strategies to be clearly spelled for the

existing and intending owners. It is the need for

this research to make a viable and purposeful

rectification so as to clearly identify the impact

of marketing strategies for small and medium

enterprises (SMEs) that should be in decision

relating to establishment.

This research is targeted at mapping out

effective strategies for effective performance of

small and medium enterprises (SMEs). There is also

the need for this research work to arouse

consciousness to the benefit of professional

markets in our business organisation. The research

work will contribute and lead to more effective

decision making by owners /managers of small and

medium enterprises (SMEs) towards continued

existence and successful operation. It can equally

provide a useful guide for prospective owners of

small and medium enterprises who may choose self-

employment as a career, particularly in a depressed

economy like ours Nigeria.

This study will also form a body of literature in

the aspect of marketing strategies on the

performance of small and medium enterprises. This

research will form a platform for further research

in the area of marketing strategies on small and

medium enterprises (SMEs) performance.

1.8 Historical background of the company

Vicky Jay Supermarket is an enterprise that was

established in 2008. It is situated at No 4 Marian

Hills Calabar, Calabar Municipal, and Cross River

State. Vicky jay supermarket basically deals on

consumables and consumable products which are

beverages, bookshop, office machines and equipment,

food, cosmetics and lifestyle.

Vicky Jay supermarket has 14 employees and one

manager. The firm has a shift system, whereby six

of the employees operates in the morning and the

other eight operates in the evening respectively.

The supermarket runs from 8am to 10pm from Monday

to Saturdays and Sundays from 2pm to 9pm.

Roseberry mart is a grocery shop that was founded

in the year 2009. It is situated at No 78 MCC Road,

Effio ette Junction, Calabar Municipal, Cross River

State. Roseberry mart deals on children wears,

wines, unisex clothes, household equipment,

submersible pumps, spirits and provisions. Rose

berry mart has eleven employees and two supervisors

who run the affairs of the firm. The mart operates

from 8am to 9pm from Mondays to Saturdays and opens

on Sunday from 2pm to 9pm.

1.9 Definition of terms:

Customer satisfaction: This can be defined as the

point whereby customers are happy with products and

services provided by a particular business.

Competitive market environment: This can be defined

as the situation whereby several firms compete for

a market segment

Decision Making: This is defined as the process of

selecting the best choice out of the available

options

High quality: This can be defined as the standard

of degree to which something meets or exceeds the

expectations of its consumers

Marketing orientation: This can defined as the

approach to which a business or an organisation

reacts to what the customer want and not what the

organisation thinks is right for the customer.

Marketing Strategy: This is defined as an

organisations strategy that combines all of its

marketing goals into one comprehensive plan.

Performance: The term performance can be defined as

the ability to meet customer satisfaction, business

profitability, consumer patronage, customer loyalty

within a given time.

Corporate Social Responsibility: This is defined as

the corporate initiative to access and take

responsibility for the company’s effects on the

community where they operate and impact on social

welfare

Small and Medium Enterprises (SMEs): This is

defined as a privately owned and operated business

with a low numbers of employees and low turnover.

Product Quality: This is defined as the collection

of features and characteristics of a product that

contribute to its ability to meet a given

requirement.

Customer Loyalty: This is said to occur when a

customer chooses to consistently purchase from

particular shop or buy one particular product,

rather than buy products made by other companies.

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 The Concept of Marketing:

The concept of marketing has long been viewed and

equally treated as subsidiary to other functions

performed by managers in their attempt to bridge

the gap that exist between the needs and the wants

of the society and the resources that are available

to the society and the trend of events has a far

enduring genesis because, even the writing of Plato

and Aristotle indicated a low esteem in which

marketing activities were held by people at that

time. It has been considered to be somewhat an

immoral act and was regarded with great contempt by

the Greek civilization which emphasizes things

intellectual in contrast to material things or

things of material. Today some regard marketing as

the source of many social ills with criticisms

levelled against it for playing on people’s

weaknesses and wants. Agenti, (2005). It is argued

out that people are being deceived into buying

things that they do not need, they are pushed into

debts and encouraged to engage in somewhat

unnecessary consumption and waste of scare

resources. The argument went further to state that

marketing raises process, excessively engage in

undesirable advertising coupled with unnecessary

product brand development. Bolling, (2006).

Marketing as a management practice according to

Theorell & Becker, (2004) has been neglected or

negated by less developed countries. This has been

attributed to the fact that in less developed

countries, marketing has been accepted without lots

of criticisms with the notion that one has to have

a socialist or other autocratic government that is

willing to compress private consumption. Hence

marketing becomes a sort of parasitic activity that

encourages waste of resources. They further opined

that “a modern marketing system is indispensible to

the smooth function of an industrialised economy

due to the fact that mass production could indeed

be inconceivable without mass consumption”.

Customer oriented marketing is not likely to lose

its importance in post-industrial society. Hence

they argued that marketing plays a key role in

economic development of industrially backwards

nations, even though this is yet, generally, to be

realized. Instead of looking at marketing as

parasitic activities that encourage waste of

resources, it is the reverse. Marketing of course,

will continue to exist regardless of the value

judgement made about nothing actually gets started

until someone sells something. Since the society’s

well-being hinges on the ability to satisfy demand

for goods and services and this function could only

be performed by marketing. Georgoff & Murdick,

(2003).

2.2 The evolution of Marketing in Nigeria:

The genesis of marketing in Nigeria could be

traced to some many years ago. This can be

conveniently delineated into some kind of time

phases such as the pre-colonial, colonial and post-

colonial periods.

Pre-colonial Periods: Before the advent of British

and the subsequent conquest of the country, trade

has been practiced both internally and externally

among the states that existed at that time in

Nigeria. In the Northern part, there was the

Saharan trade which linked most of the Hausa states

with each other states. In the eastern part, the

Aro trading system opened up distant trade within

the numerous small political units. Rothermel,

(1996). In the Delta area of the Niger, the society

itself was a merchantable one, which was organised

into trading corporation known as Hausa and these

were in competition with each. It was noticed that

in Delta area, the chiefs were not land owning

aristocrats but rather middle men with people in

the winter and at the coast. (Newman & Logan,

2008).

Colonial Periods: During the colonial period (1860

– 1960), the slave trade which was dominant in the

pre-colonial period was abolished and replaced by

trade in cash crops especially palm oil, rubber,

cocoa etc.

Indeed, African merchants were forced into the

production of desired cash crops through a variety

of means. While this was achieved in Delta areas

through forceful means, it was thorough measures

taken by the British to jeopardised manufacturing

and commerce in the northern part. Trades like

weaving, dyeing, etc. where either banned or

excessively taxed to discourage their

practitioners. This created room for foreign

manufactured goods, as people no longer produced

what they needed locally. Subsequently, a trade in

primary commodities was established through

imposition of taxes on the people and the refusal

to collect such in kind or cowries but in silver

coins which were obtainable only in the sale of

primary commodities (Abel & Hammond, 2007). Having

solved the problem of production of cash crops, a

group of Liverpool merchants and other British

parties, established trading centres or depots in

the colony. In 1879, the major British firms were

amalgamated to form the Corporate Affairs

Commission (CAC) with other nationals helping to

lay the foundation of Nigerian business enterprises

system such as John Holt, Petterson Zochonis and

company, G.B. Olivient Limited trading company

(UTC), etc. with Lever Brothers in 1920. Such

establishments like UAC, SCOA, Kaycee and

Chellatains became the dominant firms in the

distributive trade.

Post-independence: During the period immediately

after the independence (1960), Nigeria saw the

gradual withdrawal of the Big Europeans firms from

its marketing system. The achievement was in part

through the action of the government such as the

“enactment of the enterprises promotion decree in

1979” and through the rise in consumers, education,

income and social mobility. The establishment of

manufacturing/assembly plants has helped greatly in

the emergence of marketing organisations during

this period. Guiltinan, (2000). Of course the late

70’s and early 80’s witnessed the advent of oil

surplus with excess money which therefore

encouraged conspicuous consumption. This therefore

attracted many manufacturers to Nigerian marketers.

The condition created at that time was a situation

of tense competition. Thus marketers were forced to

develop and adopt proper strategy to win customers.

Hence, the second republic witnessed growth in the

number of marketing firms with the proliferation of

import – export outfits, but after the military

takeover in 1983, things however changed.

Makridakis, (2004). Thus, there was a ban on the

importation of goods and very strict economic

measures were introduced which created a seller

market for Nigeria and the tempo which was gathered

by the marketers in the previous era was lost as

products were virtually selling themselves during

the period of scarcity. The present state of

marketing could therefore be presented by some

studies earlier conducted. In a survey conducted by

Imosilli, (1978) he observed that marketing and

personnel functionaries represented only 16% of top

managers thus contracts quickly arose with the

later survey by Nwokoye, (1978) in which the

thirty-eight firms surveyed only two(2) did not

employ people with any marketing qualifications.

The research also noted that marketing, as a

managerial function seems to be well recognised by

the Nigerian industry as indicated by the high

title with which the practitioners were designated.

Thus, the financial post magazine stressed,

“Marketing has assumed the most important and

central position in Nigerian businesses with the

marketing department being the surest way to the

top”.

2.2.1 Marketing Institutions in Nigeria

In Nigeria, marketing institutions,

structures and functions are still at the

developing stage. However, distributive functions

and institutions are in the forefront of this

development and are mainly engaged in the

importation of good consumer goods – durables

and/or nondurables. The most important as earlier

stated are the CFAC, John Holt, and UAC. Others

include UTC, R.T. Brisco, Kaycee, Leventis stores

and motors of which most were still foreign

controlled with 60% ownership of shares capital

until the wake of indigenisation policy of the

federal government. Adeleye, (2002). Most of

these business firms are sole agents for oversees

manufacturers who have command of available

capital, marketing experiences, influence and

volume and ready line of credit with their

financiers and suppliers. These agencies are

conservative in their operations as their pricing

and branch managers perform few or no managerial

functions. All decisions that are consequential

are usually taken at the head office. Indeed,

comparable indigenous firms are very few and

offer no serious competition even in the

wholesale distribution of goods in Nigeria. In

fact, indigenous distributors in Nigeria cannot

compete because they are unable to and very

reluctant to employ the suitable manpower needed.

Hence, they are small in size and tend to spread

themselves too much, as they tend to over-

diversify. Inyanda, (2005)

2.3.1 Marketing Problems in Nigeria

An economy that is developing and described

as “sellers” market faces some serious problems.

The major ones include:

1 Storage of goods: This causes a wide area of

unsatisfied demand in the position of goods

and services. This was stated after the

“Udorji’s Salary Commission’s” recommendation

was implemented – as demand has been rising

constantly while supply is unable to cope

thus, affecting all the sectors of the

economy.

2 Problem of advertising and promotion: This

include loss of creativity and innovation by

advertising executives, non-existence of

promotion and the impossibility to plan

ahead, curtailment of advertising activities,

media inflexibility and inadequacy and

shifting in promotional ideas that lead to

possible decline.

3 The problem of distribution: Sales and

advertising which include transportation

bottleneck, trade malpractices such as price

inflation, hoarding, conditional selling and

corruption, sales force complacency and loss

of selling and merchandising skills, and

finally retardation of distributor’s growth

and loss of effectiveness. Akpamgbo, (2001)

2.3.2 Marketing Strategy – Definition and its

importance.

In order to meet the increasing risks and

uncertainties that are prevalent in the business

environment, management of majority small and

medium enterprises (SMEs) is turning to the use

of marketing strategy as an instrument for

combining growth, profitability and viability of

their enterprise. The use of marketing has

increasingly become important because

environmental surveillance has become a result

changes in the business external environment.

Cravens, (2004).

Stanton, (2006) defines marketing strategy in

its broadest sense as a dynamic action, stimulant

to accomplish an organisation’s mission, business

goals and its functional objectives. He also

opined that it is also a catalyst, the main

thread and thrust of any business that provides a

systematic driving force, which brings into being

the desired relationship between business and its

environment.

2.3.3. Survival of small and medium Enterprises

(SMEs)

There are no generally accepted definitions

of small and medium enterprise mainly because of

the wide diversity of businesses. Khan, (2009)

defined small and medium enterprise as a

privately owned and operated business,

characterised by a small number of employees and

low turnover.

Small and medium enterprises are presently

being considered as very important to the economy

of any nation as engines for economy. It has been

estimated by the World Bank that the informal

sector of the economy is presently providing

above 50% of Africa’s urban employment. Its

contribution to the GDP in many countries stands

at 20% of their GDP. The World Bank went forth by

stating “if the sector is encouraged in the sub-

Saharan Africa, it would grow at an annual rate

of 75%, and would invariably increase 35millions

jobs within 10years. Etgar, (2000). At any rate,

most of small and medium enterprise fail to

survive and or achieve success in their venture

to a certain extent because most of them are

ignorant in terms of planning, how to solve the

fitting problem involved in starting and running

a business, where to go, who to see so as to

develop appropriate and effective strategy for

the survival of the business. Nylen, (2003). As a

result of the above factors, small and medium

enterprise have failed to make any reasonable

impact on the economy, by way of expansion,

modernisation since their inception while some

died naturally. The survival and success of any

small and medium enterprise (SMEs) therefore

depends on the superior use of marketing

strategy. Therefore, the business owners must

acquire thorough understanding skill and

application of business strategy. Lehman &

Steckel (2000)

2.4 Strategies for small and medium enterprise

survival and success:

Having discussed so far on the need for

business to adopt necessary marketing strategies

in order to enhance survival in the face of high

competitive environment and the effect of the

present economic recession in the world, it is

pertinent at this juncture to review some of the

strategies for business survival if carefully

adopted. These strategies include:

(a) Relationship Marketing and customer

satisfaction

(b) Corporate Social Responsibility and consumer

patronage

(c) Market orientation and Business profitability

(d) Product quality and Customer Loyalty

2.4.1 Relationship Marketing and Customer

Satisfaction

Velnampy & Sivesan, (2012) conducted a

research on “customer relationship marketing and

customer satisfaction: A study on mobile service

providing companies in Sri lanka”. They opined

that in this present era, customer relationship

marketing plays a vital role and the major goals

of customer relationship marketing can be

expressed simply as understanding and treating

customers better for increased loyalty and

profit.

The objectives of their study was to examine

the relationship between the customer

relationship marketing and customer satisfaction

in mobile service providing companies, to

identify the role of customer relationship

marketing on customer satisfaction, to

investigate the impact of customer relationship

marketing on customer satisfaction and to suggest

the mobile service companies to build the

customer value.

Data was collected for this research through

a seven points likert type summated rating scales

of questionnaire. A close ended questionnaire was

developed for the purpose of collecting the main

data for the study. A sample of one hundred and

seven customers was surveyed from mobile service

providing companies such as Airtel, Dialog and

Mobitel. The questionnaire were in three sections

A, B, and C. Section A consists of personal

details such as sex, status, age, education,

monthly income, company, name and length of time

customer has been in brand kinds of packages.

Section B consists of ten statements such as

trust, commitment, equity and empathy to measure

customer relationship marketing. Section c

consists of ten statements to evaluate customer

satisfaction.

In the empirical results, Velpanampy &

Sivesan, (2012) found out that before applying

statistical tools, testing of the reliability of

the scale is very important as it shows the

extent to which a scale produces consistent

results if measurements are made repeatedly. They

opined that it is by determining the association

in between scores obtained from different

administration of scales. Cronbach’s alpha

method was used to test the reliability.

Cronbach’s alpha estimate for trust was 0.889,

commitment scale was 0.890, empathy scale was

0.908, equity scale was 0.901, customer

relationship marketing 0.855 and the overall

customer value creation scale was 0.726. The

constructs were therefore deemed to have adequate

reliability.

Correlation and regression analysis was used

to measure relationship and contribution among

the dependent and independent variable.

Regression test was carried out to find the

contribution of customer relationship marketing

on customer satisfaction. According to the

result, they found out there was a significant

relation between customer relationship marketing

and customer satisfaction.

Correlation (matrix) analysis was applied to

identify the relationship among variables and the

result revealed that there was significant

correlation among dimensions of customer

relationship marketing and customer satisfaction.

Such reliability, responsiveness, functionality

were positively correlated.

In conclusion, they opined that there are

only four mobile service providing companies

(Dialog, Mobitel, Airtel, Etisalat) in Sri Lankan

mobile service market. The competition between

them is more intense than ever that they not only

compete in infrastructure facilities like network

tower, they have also invested a lot of money to

provide effective service for customers. Customer

relationship marketing has significant impact on

customer satisfaction. However, proportion of

impact on customer relationship marketing on

customer was on low level. Their reasons were

that most of mobile service providing companies

failed to build to trust among their customers.

Some of the companies spent a lot of time and

money to build and maintain their company’s

infrastructure facilities but they fail to take

fruitful effort to satisfy their customer needs

with psychological view.

According to this research as to what mobile

service providing companies have been doing, they

opined that priority should be given to how to

reduce customer dissatisfaction and improve

service quality.

2.4.2 Corporate Social Responsibility and Customer

Patronage

Babatunde & Akinboboye, (2013) conducted a

research on “Corporate Social Responsibility on

Consumer Patronage: A case study of a

telecommunication company in Nigeria”. They

opined that corporate social responsibility has

become an important topic in recent years, most

especially in a developing country like Nigeria

where government regulation is a “toothless

bulldog” to the private and multinational

companies. This, with the growing recognition of

the significant effect the corporate social

responsibility was on a company and the

environment. They added that it has become

increasingly clear that firms can contribute

their own wealth and to overall societal wealth

by considering the effect they have on the

community where they operate and the world at

large when making decisions.

The objectives of their study was to know how

effective corporate social responsibility (CSR)

is on consumer patronage from social responsible

firms, to know the influence of corporate social

responsibility on consumer attitudes towards

product and social firms, to know the positive

and negative effects of corporate social

responsibility.

The research was conducted using survey

approach. A self-completion questionnaire was

designed and distributed to the staff of the

company on a working day. The population of the

study was the accessible management staff of MTN

in Lagos State who, in one way or the other had a

relationship with the customer far or near. A

snowball sampling method was used which gave the

sample size of 100. The questionnaire consists of

two sections. Section A and B. section A

contained personal data of respondents and

section B covered the main questions relating to

the topic under study. 90 were properly filled

among the returned questionnaires.

Data was analysed using simple percentage and

frequency, while the chi-square method was

employed for the hypotheses. The findings

suggested that the practice of corporate social

responsibility as a marketing strategy enhances

consumer patronage towards a particular firm and

also by investing in corporate social

responsibility (CSR), a firm could achieve a

positive outcome in terms of its financial

performance.

In conclusion, they added that corporate

social responsibility affects consumer patronage

worldwide and in Lagos metropolis. From the

analysis collected, it was indicated that

generally corporate social responsibility (CSR)

is of great importance in the following areas –

consumer patronage, society, consumer

satisfaction, retaining and building loyal

customers.

2.4.3 Market Orientation and Business Profitability

John & Stanley, (1990) conducted a research

on “the Effect of market orientation on business

profitability”. Their aim was to develop a valid

measure of market orientation and analyse its

effect on business profitability, to know the

relationship between sustainable competitive

advantage and market orientation, and why a

market orientation is the business culture that

most effectively and efficiently creates superior

value for customers.

The sampling units for the study were 140

strategic business units (SBUs) of a major

western corporation. The strategic business units

(SBUs) were all in the forest products division

of the corporation. Within each SBU, the top

management team received a questionnaire titled

“Business Practices Survey”. They also assured

the respondents of their anonymity. Four hundred

and fourty questionnaire were sent out. Three

hundred and seventy-one usable questionnaire were

returned, an 84% response rate. The total of 113

strategic business units (81%) with no missing

data consisted of 36 commodity businesses, 23

specialty products, 51 distribution businesses

and 3 export businesses.

To establish the face validity of the

construct, they developed multiple items that

characterised the hypothesised five components of

market orientation. They submitted these items to

a panel of academicians who are recognised

authorities on strategic marketing. Items were

phrased to describe both favourable and

unfavourable practices to offset any

affirmation/negation response bias. Responses

were recorded on a 7-point likert scale with a 1

indicating that the business unit does not engage

in it to a very large extent.

On the validity, they examined with simple

correlation and factor analysis on the

relationship among the three behavioural core

market orientation components and their

relationships with three other management policy

variables that are conceptually linked to market

orientation. In summary, they found out that

there was support for the construct validity of

the three components model of market orientation.

Ordinary least squares regression analysis

was to test that market orientation and

performance are associated positively. Their

findings support the hypothesis that for both the

commodity and non-commodity, market orientation

is an important determinant of profitability.

Among the non-commodity businesses, a positive

market orientation/profitability relationship is

found only among businesses that are above the

median in market orientation.

In conclusion, they added that the findings

suggested that after controlling the important

market-level and business level influences,

market orientation and profitability are strongly

related. These findings were entirely consisted

with the intuition and expectations of both

scholars and practitioners over the past decades

about the nature and effects of market

orientation.

2.4.4 Product Quality and Customer Loyalty

Agustina & Iman, (2010) conducted a research

on the “effect of product quality on customer

loyalty: A case study on the brand of Honda Motor

Cycle in Indonesia”. They opined that there is an

increase in economic development in Indonesia

today, making various automotive industry compete

to create “quality product” and superior to their

competitors. They added that new product

(Thermotocycle) made for personal use, is

required for condition that can satisfy customer

and it is also considered to achieve improved

corporate profits and high customer loyalty.

The aim of their study was to analyse the

influence of the independent variable “product

quality” on customer loyalty in the Honda brand

motorcycle products. In the study, the use of

primary data was collected from 110 respondents

selected by simple random sampling. Data was

analysed using multiple regression analysis. From

the test result obtained by ANOVA calculated F

value was 7.703 with significant level of 0.001

since 0001 is the value of <0.005. The regression

model was used to predict customer loyalty. The

findings showed that product quality enhances

customer loyalty.

CHAPTER THREE:

3.1 The Study Area:

The area of this study is Calabar

Municipality which is the capital city of Cross

River State. Calabar municipality lies between

latitude 040 15’ and 50N and longitude 80 25’E in

the north. The municipality is bounded by

Odukpani local government area, in the North-

East by the great Kwa rivers. Its southern shore

is bounded by the Calabar River and Calabar

south Local Government Area. It has an area of

331,551 square kilometres.

The study area is predominantly occupied by

the Efiks, Quas, and the Efuts with several

marketing activities located within Calabar.

Calabar Municipality is chosen as the study area

because the selected retail outlets in question

are located in Calabar Municipality and

consumers of the firm’s product are mostly

resident in Calabar Municipality.

3.2 Population of the study:

According to Ikeagwu, (1998) Population

is the aggregate of the individual person or

objects for investigation. The population of

this study were the management and employees of

Vickey Jay Supermarket and Roseberry Mart

respectively. A population of 28 employees was

taken into consideration. Vickey Jay

supermarket has 15 employees while Roseberry

Mart has 13 employees.

3.3 Research Design

In this study, survey and exploratory

research designs was adopted. The survey

research design is suitable for collecting

primary data from the survey respondents in

order evaluate the impact of marketing strategy

on performance of selected small and medium

enterprise while exploratory research design is

a kind of field study in which the researcher

tries to obtain some information about a

particular subject in order to increase his

understanding of the nature of the problem. In

order words it is used to enhance collection of

secondary data.

This study will make use of

questionnaire in collecting qualitative and

quantitative data from the sample of the study

population.

3.4 Sampling Design and Procedures

This study adopted simple random

sampling in selecting the respondents. The

total population size is 28, so in determining

the sample the sample size of the respondents,

Yaro Yameni’s formula will be used. The formula

for determination of sample size is

Where N = the population of thestudy

n = N

1 + N(e2)

e = tolerable error margin (taken tobe 5% or 0.05)

n = desired sample

1 = constant

For this we have

28 1 + 28(0.052)

28 1 + 0.07

28 1.07 = 26

3.5 Sources of Data and Data Collection

Two major sources of data that was used in

this study are primary and secondary sources of

data. The primary data was gathered through the

use structured questionnaires that will be

administered to randomly selected members.

Secondary data was obtained from textbooks,

internet, journals, seminar paper, unpublished

works and other materials relevant for this

study.

3.6 Data treatment technique

Simple descriptive statistical tools such as

table, frequency and percentage will be used to

present the findings.

The formulated hypotheses were tested with

the use of simple regression analysis.

Y’ = a + bx

Where a = the y intercept

B = the slope of the line

Y’= predicted value of Y

x = the independent variable or

predictor

3.7 Limitation of the study

Like any other research, this project

also was confronted by certain constraints and

limitations. One of the limitations of this

study is that an in-depth analysis of the

individual retail outlets cannot be made for

the simple fact that small and medium

enterprise owners do not want to disclose their

strategies to the researcher. The near absence

of information or statistics about operations

of small and medium enterprises in Calabar

municipality makes it difficult to make

accurate assessment of the business operations.

More so, the short time and little funds

available to the researcher made it difficult

to make a wider coverage and in-depth

assessment. The time within which the study was

carried out was too short for such an in-depth

study.